I’m not sure Geppetto would make a deal with Rumple behind the backs of SW and PC. Rather, perhaps by simple virtue of being made from the same enchanted tree, Pinocchio automatically reverted back to his puppet state and was transported to the “real world.”
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"That’s how you know you’ve really got a home. When you leave it, there’s this feeling that you can’t shake. You just miss it." Neal Cassidy